How to Calculate 2016 New Jersey State Income Tax by Using State Income Tax Table
1. Find your income exemptions
2. Find your pretax deductions, including 401K, flexible account contributions ...
3. Find your gross income
4. Check the 2016 New Jersey state tax rate and the rules to calculate state income tax
5. Calculate your state income tax step by step
6. If you want to simplify payroll tax calculations, you can download
ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed.
Tax rate used in calculating New Jersey state tax for year 2016
State Abbreviation:
NJ
State Tax Withholding State Code:
34
Acceptable Exemption Form:
NJ-W4
Basis For Withholding:
State or Federal Exemptions
Acceptable Exemption Data:
S, M, C, D, E /Number of Exemptions
TSP Deferred:
No
Non-Federal 401(k) Deferred:
Yes
Special Coding:
Determine the Total Number Of Allowances Claimed field as follows:
First Position -
If Item 3 of the NJ-W4 Contains:
Enter:
A
S
B
M
C
C
D
D
E
E
If Item 3 of the NJ-W4 is Blank
and if the Status on Line 2 Is:
Enter:
Single
S
Married/Civil Union
Couple Joint
M
Married /Civil Union
Couple Separate
S
Head of Household
M
Surviving Spouse/Surviving
Civil Union Partner
M
Second and Third Positions - Enter the total number of exemptions claimed in Item 4 of the NJ-W4. If less than 10, precede with a zero.
Additional Information:
If a state income tax certificate has not been processed or if a valid state exemption code is not present, the Federal exemptions will be used in the computation of state tax.
Need a Better Way to Calculate New Jersey State Income Tax Withholdings?
Subtract the nontaxable biweekly non-Federal 401(k) contribution from the gross biweekly wages to obtain the adjusted gross biweekly wages. Note: Do not subtract the biweekly Federal Thrift Savings Plan contribution.
Multiply the adjusted gross biweekly wages computed in step 1 by 26 to obtain the annual wages.
Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to compute the taxable income.
Exemption Allowance = $1,000 x Number of Exemptions
Apply the taxable income computed in step 3 to the following table to determine the annual New Jersey tax withholding.
Tax Withholding Table
Single or Married/Civil Union Couple- Filing Separately
(Rate Table A)
If the Amount of
Taxable Income Is:
The Amount of New Jersey
Tax Withholding Should Be:
Over:
But Not
Over:
Of Excess
Over:
$ 0
$ 20,000
$ 0
plus
1.5%
$ 0
20,000
35,000
300
plus
2.0%
20,000
35,000
40,000
600
plus
3.9%
35,000
40,000
75,000
795
plus
6.1%
40,000
75,000
>500,000<
2,930
plus
7.0%
75,000
>500,000
and over
32,680
plus
9.9%
500,000<
Married/Civil Union Couple - Filing Jointly or Head of Household
or
Surviving Spouse/Surviving Civil Union Partner
(Rate Table B)
If the Amount of
Taxable Income Is:
The Amount of New Jersey
Tax Withholding Should Be:
Over:
But Not
Over:
Of Excess
Over:
$ 0
20,000
$ 0
plus
1.5%
$ 0
20,000
50,000
300
plus
2.0%
20,000
50,000
70,000
900
plus
2.7%
50,000
70,000
80,000
1,440
plus
3.9%
70,000
80,000
150,000
1,830
plus
6.1%
80,000
150,000
>500,000<
6,100
plus
7.0%
150,000
>500,000
and over
30,600
plus
9.9%
500,000<
Optional Rate Table C
If the Amount of
Taxable Income Is:
The Amount of New Jersey
Tax Withholding Should Be:
Over:
But Not
Over:
Of Excess
Over:
$ 0
$ 20,000
$ 0
plus
1.5%
$ 0
20,000
40,000
300
plus
2.3%
20,000
40,000
50,000
760
plus
2.8%
40,000
50,000
60,000
1,040
plus
3.5%
50,000
60,000
150,000
1,390
plus
5.6%
60,000
150,000
>500,000<
6,430
plus
6.6%
150,000
>500,000
and over
29,530
plus
9.9%
500,000<
Optional Rate Table D
If the Amount of
Taxable Income Is:
The Amount of New Jersey
Tax Withholding Should Be:
Over:
But Not
Over:
Of Excess
Over:
$ 0
$ 20,000
$ 0
plus
1.5%
$ 0
20,000
40,000
300
plus
2.7%
20,000
40,000
50,000
840
plus
3.4%
40,000
50,000
60,000
1,180
plus
4.3%
50,000
60,000
150,000
1,610
plus
5.6%
60,000
150,000
>500,000<
6,650
plus
6.5%
150,000
> 500,000
and over
29,400
plus
9.9%
500,000<
Optional Rate Table E
If the Amount of
Taxable Income Is:
The Amount of New Jersey
Tax Withholding Should Be:
Over:
But Not
Over:
Of Excess
Over:
$ 0
$ 20,000
$ 0
plus
1.5%
$ 0
20,000
35,000
300
plus
2.0%
20,000
35,000
100,000
600
plus
5.8%
35,000
100,000
>500,000<
4,370
plus
6.5%
100,000
>500,000
and over
30,370
plus
9.9%
500,000<
Divide the annual New Jersey tax withholding by 26 to obtain the biweekly New Jersey tax withholding.
in house payroll tax solution for New Jersey small businesses here.
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